DESCRIPTION: Inter-Citic Minerals Inc. is a gold exploration company developing the Dachang Gold Project—one of China's largest undeveloped gold resources. Results of a scoping study released June 6, 2009, demonstrate positive economics for an open-pit mine. At US$750/oz gold, Dachang is estimated to generate an after-tax IRR of 40% and an after-tax project NPV of US$200M at a 5% discount rate.
The information provided below is based on the most recent information we have received from analysts, newsletters and other contributors to Streetwise Reports' The Gold Report or The Energy Report. We encourage you to visit the company's web site and call the company for more specifics on this company before you decide to invest.
"Price target increased to $2.45 from $2.20. . .ICI is advancing its Dachang Gold Project in China toward feasibility. We believe ICI presents an excellent opportunity to invest in a potentially high‐return, low‐cost gold project in China—the world's largest gold-producing country. Due to the scarcity of large global mines, the project could be attractive for a company already working in the region, a new entrant or a Chinese company. The share price currently reflects a discount to our development project.
NPV estimate of $2.43/share, which only incorporates 57% of all resources in the mine plan. Additionally, the shares currently do not reflect the value for inferred resources being upgraded with infill drilling and the blue‐sky exploration potential on identified mineralized zones."
Gold Stock News, Patrick Heller (08/16/10)
"Inter-Citic Minerals is uniquely positioned on a potentially huge new gold camp with an already significant gold resource. It recently attracted a major Chinese mining partner that has filled the company coffers with enough money to continue resource expansion and take the flagship Dachang Gold Project to feasibility.
. . .Inter-Citic's ability to attract a significant investment from a major player in international gold mining is clear validation of the quality and value of the Dachang Gold Project—and creates a natural candidate for additional interest by Zijin. Last year, ICI also attracted the strong interest of several leading investment analysts and investment advisors. . .interest should intensify this year after Inter-Citic expands its resource at Dachang. The first results of 2010's 25,000-meter drilling program should start coming in by late summer. Regardless, ICI's Dachang Gold Project is already being consid¬ered by many in the industry as a potentially major new project with a solid base for additional future growth."
Luke Burgess, Wealth Daily (08/13/10)
"Inter-Citic Minerals is rapidly advancing its 83%-owned Dachang Gold Project in Western China. A recently published NI 43-101-compliant update estimates Dachang ct contains 1.88 Moz. gold in the M&I category and 1.51 Moz. in the Inferred category.
Inter-Citic continues to advance the feasibility and permitting processes for the Dachang mine. The company's success has already attracted the attention of major mining investment firms, including the Zijin Mining Group—China's largest gold producer with over 2.5 Moz. annual output. With a market cap of over $20B, Zijin recently acquired 19.15% of Inter-Citic."
The Gold Report Interview with Brien Lundin (06/18/10)
"Well, Inter-Citic Minerals keeps putting out positive news releases. They just keep finding more gold. Their Dachang project is enormous. "They've explored only a fraction of it so far and I believe their drilling hit ratio approaches 95%. One of the important things they've done on the corporate front recently is bringing in major financing from a local Chinese gold company. Combining this with their large shareholding by another local—and powerful—Chinese group, it seems that this project is very likely to make its way into production.
While working toward production, I think they're also looking at ways to maintain the exploration upside for shareholders. Dachang has evolved into a development project and they're getting all those ducks in a row to bring that project forward to mine it. But huge swaths of their property position, where they are finding very similar mineralization, are underexplored. The company wants to preserve that upside potential for investors as well as the steady development potential of Dachang as a gold project. So while Inter-Citic's had a good run in the share price, tremendous upside potential remains. I couldn't be more positive about it."
View Entire Article: Brien Lundin: Gold's (Almost) Free at Last
Catherine Gignac, NCP Northland Capital Partners
(05/03/10)
"EVENT: Strategic 19.2% equity position acquired by Chinese producer injects $18.6M to help finance feasibility study for the Dachang Project.
Raising price target to $2.20/share. NAV raised 17% to $1.77/share from $1.51/share. P/NAV multiple raised to industry comparable 1.25x from 1.00x to reflect underlying financial support and lower perceived development risk. NAV reflects increase to cash and shares outstanding from recently completed private placement with Zijin Mining Group (2899‐SEHK), and higher gold price forecast of US$850/oz from US$800/oz in line with trailing annual average.
. . .Inter‐Citic Minerals controls the Dachang Project, is well-financed as it advances the Project through feasibility and has a large property with excellent regional exploration upside.
THESIS: Opportunity to invest in a potentially high‐return, low‐cost gold project in China with exploration upside. Strategic local partners and shareholders provide technical and financial support."
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